The most common method of compensation for advertising agencies today is _____.
A) a labor-based fee system
B) a standard commission of 10 percent of the gross amount of the billing
C) a standard commission of 15 percent of the gross amount of the billing
D) a standard commission of 20 percent of the gross amount of the billing
E) outcome-based programs

Question

Quizplus · Accepted Answer

While commissions were historically the standard compensation method for advertising agencies, today the most common method is a labor-based fee system, where the agency charges clients based on the amount of time and resources spent creating and executing a campaign. Outcome-based programs are also becoming more popular, where the agency is compensated based on the success of the campaign. However, neither of these are as common as the labor-based fee system.

The Most Common Method of Compensation for Advertising Agencies Today